Coca Cola 2011 Annual Report Download - page 13

Our Company, through its divisions and subsidiaries, is a party to numerous collective bargaining agreements. As of December 31,
2011, approximately 19,000 associates in North America were covered by collective bargaining agreements. These agreements
typically have terms of three to five years. We currently expect that we will be able to renegotiate such agreements on satisfactory
terms when they expire.
The Company believes that its relations with its associates are generally satisfactory.
Securities Exchange Act Reports
The Company maintains a website at the following address: www.thecoca-colacompany.com. The information on the Company’s
website is not incorporated by reference in this annual report on Form 10-K.
We make available on or through our website certain reports and amendments to those reports that we file with or furnish to the
Securities and Exchange Commission (the ‘‘SEC’’) in accordance with the Securities Exchange Act of 1934, as amended (the
‘‘Exchange Act’’). These include our annual reports on Form 10-K, our quarterly reports on Form 10-Q and our current reports
on Form 8-K. We make this information available on our website free of charge as soon as reasonably practicable after we
electronically file the information with, or furnish it to, the SEC.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the following factors, which could
materially affect our business, financial condition or results of operations in future periods. The risks described below are not the
only risks facing our Company. Additional risks not currently known to us or that we currently deem to be immaterial also may
materially adversely affect our business, financial condition or results of operations in future periods.
Obesity and other health concerns may reduce demand for some of our products.
Consumers, public health officials and government officials are highly concerned about the public health consequences associated
with obesity, particularly among young people. In addition, some researchers, health advocates and dietary guidelines are
encouraging consumers to reduce consumption of sugar-sweetened beverages, including those sweetened with HFCS or other
nutritive sweeteners. Increasing public concern about these issues; possible new taxes on sugar-sweetened beverages; additional
governmental regulations concerning the marketing, labeling, packaging or sale of our beverages; and negative publicity resulting
from actual or threatened legal actions against us or other companies in our industry relating to the marketing, labeling or sale of
sugar-sweetened beverages may reduce demand for our beverages, which could affect our profitability.
Water scarcity and poor quality could negatively impact the Coca-Cola system’s production costs and capacity.
Water is the main ingredient in substantially all of our products. It is also a limited resource in many parts of the world, facing
unprecedented challenges from overexploitation, increasing pollution, poor management and climate change. As demand for water
continues to increase around the world, and as water becomes scarcer and the quality of available water deteriorates, our system
may incur increasing production costs or face capacity constraints which could adversely affect our profitability or net operating
revenues in the long run.
Changes in the nonalcoholic beverage business environment and retail trends could impact our financial results.
The nonalcoholic beverage business environment is rapidly evolving as a result of, among other things, changes in consumer
preferences, including changes based on health and nutrition considerations and obesity concerns; shifting consumer tastes and
needs; changes in consumer lifestyles; and competitive product and pricing pressures. In addition, the nonalcoholic beverage retail
landscape is very dynamic and constantly evolving, not only in emerging and developing markets, where modern trade is growing
at a faster pace than traditional trade outlets, but also in developed markets, where new formats such as discounters and value
stores, as well as the volume of transactions through e-commerce, are growing at a rapid pace. Our industry is also being affected
by the trend toward consolidation in the retail channel, particularly in Europe and the United States. If we are unable to
successfully adapt to the rapidly changing environment and retail trends, our share of sales, volume growth and overall financial
results could be negatively affected.
If we fail to realize a significant portion of the anticipated benefits of the acquisition of CCE’s North American business, the value of
your investment in our Company may be adversely affected.
On October 2, 2010, we acquired CCE’s North American bottling and distribution operations. We believe the acquisition will
enable us to evolve our entire business in North America, including the acquired operations, to more profitably deliver our
valuable brands in the largest nonalcoholic ready-to-drink beverage market in the world. When we determined to make the
11